Apple board recommends against shareholder proposals

The four shareholder proposals set for voting at the Apple annual shareholders …

Apple released its annual proxy report for investors this week, noting for the first time that such reports are now published online, thanks to new SEC rules. The report details four proposals that are slated for voting by Apple's shareholders during the annual shareholders meeting, though Apple's board of directors is recommending that shareholders vote against all proposals.

Two of the proposals recommend Apple create additional annual reports, one detailing political contributions, and one detailing Apple's sustainability measures. The board maintains that such information is already available in Apple's SEC filings and its environmental reports, respectively. The board feels that the additional expenditure to create such reports would offer little, if any, additional benefit. Transparency of these issues is important, but Apple already makes such information publicly available on its website.

Another proposal suggests Apple should adopt principles for health care reform as recommended by the National Academy of Sciences' Institute of Medicine. While health care reform is a laudable goal, Apple's board doesn't believe that adopting these principles is wise for the company, as health care reform will rely on the cooperation of numerous outside agencies, companies, or even the government. The board feels that adopting such a policy could later restrict options for Apple, even ones that may be beneficial to the company. And from my understanding, Apple provides pretty good coverage for its employees that qualify.

The last shareholder proposal requests that Apple allow shareholders to ratify salaries of its top executives. Though exorbitant executive compensation has been an issue with recent scandals and the economic downturn, the board believes Apple's policies on compensation are reasonable and are able to attract top talent to the company. Given the company's recent record breaking sales and profits, the compensation doesn't seem unwarranted.